Hello all
@splinterlands lover and Hive friends
Hope everything is good at your end.
Their are numerous ways to earn form the Splinterlands a Play2earn game on Hive blockchain. DAR ENERGY CRYSTAL (DEC) serve as Splinterlands native digital token. The token was introduced as reward token and players earned as a reward from ranked battle There was a pool of token rewards which is constantly divided among the players who win the ranked battle. The initial price of the token was1000 DEC equivalent to the $1 and in the game some of the assets still considered the 1000 DEC equivalent to the 1 USD for purchase despite the market price of the DEC is quite low form it pegged value of 1USD.
Their are many reasons that effects the price of the DEC token and one of them is the high overall supply and liquidity in the market. Over the time the Splinterlands team have come up with ideas and mechanism that support the DEC price but non of them seems to be was much effective. The Great Burning Event was one of such attempt by the team. This is very much essential to have a mechanism that consume the supply permanently or Burn the DEC form the Splinterlands Ecosystem. During the event players burn the 380,759,257.877 DEC and 161,573,729.434 DEC-B. There are many factors that may push DEC to peg like Land 1.5, the recently proposed proposal to allow DEC burning into Soulbound assets like cards, Riftwatchers purchase with DEC and we do not know the future changes / editions being released.
New Proposal for the using the HBD Savings & using Interest to buy & burn DEC daily
A proposal refers to a suggestion for modifying something within the Splinterlands game ecosystem. The community also has the opportunity to submit their own proposals, some of which may be implemented in the game. Recently, a new proposal by @holoz0r has been introduced. This proposal suggests utilizing the DAO Deposits Stable Coin for Hive Backed Dollar (HBD) Savings, leveraging the interest earned to daily purchase and burn DEC.
It the proposal get passed by the community then the Decentralized Autonomous Organization (DAO) Stable Coins
equivalent to 250k USD will be converted into the HBD stable coin and 246k out of 150k worth of HBD will be shifted into saving to earn the 20% 20% Annual Percentage Rate (APR) and use those earning to purchase the DEC form the market and burn half of the purchase to remove the DEC from the market. Remaining half will be shifted to the DAO Treasury. The proposal looks very attractive but I have gone through all the discussion on the proposal post and sharing the highlight some important points form the discussion. The main purpose of the proposal is to stabilize the price of DEC to its pegged value.
The very first challenge is to convert such a huge amount into the HBD. HBD has a market cap of 11M, and it is around 6.5% out of the Hive market cap.
The stable coin available in the DAO fund first need to convert into the HIVE and the the same need to be convert into the HBD. The process looks very easy but in actual it is not. Their is no way that the all amount can be convert in to HBD in one go so one option is to divide the fund into small packages and then make the purchase in segments over the period of certain time. This will be for sure time consuming and required the efforts. One fact I come to know if that the liquidity does not play any role during converting the Hive in to HBD (and vice versa) in internal market. The proceed does not adding/removing tokens to/from circulation.
Another option is to use the bHBD and BUSD pool on cubdefi by @leofinance but the liquidity main challenge here also. I was surprised to read some comments that claimed that bHBD ae not backed with actual HBD, so you cannot convert it back to real HBD, team minted their own bHBD without a HBD deposit.
Other aspect is if the DAO every needing quick funds then the fund in the saving may be Withrow but that required three day time to get released. Other option would have to dump DEC into market and that will tank the price. Hope we will not come across such situation.
Final Thoughts
Anything is coming for the betterment if the game system I will vote for YES and as mentioned above their will be some challenges which need to address carefully. The fund is huge and that make it crucial decision.
The main goal of the proposal is to have a sustainable income taht may be used to create a market maker for the DEC.